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geography

Starbucks' internationalization continues apace: it will open its first store in Mexico this year, followed by ambitious expansion throughout the Latin American region. But while coffee shop culture is said to be sweeping Latin America, it remains to be seen whether Starbucks' premium strategy can succeed while economic hardship is rife.

Published By Datamonitor

Starbucks' wLAN service now covers 1,200 stores. With more than 40 million 'mobile professionals' in the US alone, the new service could pay off - but it faces fierce competition from other ISPs and foodservice companies. Starbucks needs to ensure its network is reliable and competitively priced, and also ensure its marketing strategy is highly effective.

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Shareholders of Starbucks Coffee Japan [STBJF.PK] have approved a change to the corporate charter allowing the sale of alcohol at any outlet. The move comes alongside the debut of a series of new products aimed at reviving sales. Successful introductions could well translate into new offerings in the US.<BR />

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Strong 2002 results and high hopes for 2003 were key messages to stockholders at Starbucks' recent AGM. Through full use of modern technology, innovative rewards programs and old-fashioned physical expansion, Starbucks looks set for further growth despite current economic and political instabilities.<BR />

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A new liqueur, produced through a partnership with Jim Beam Brands, is the latest addition to Starbucks' [SBUX] product portfolio. The drink is likely to be a success with many of Starbucks' coffee drinking fans. However, the alcoholic beverage must be positioned carefully to avoid tarnishing Starbucks' family-friendly image.

Published By Datamonitor

Published By Datamonitor

Brewing giant SABMiller has completed the E816 million takeover of Dutch Brewer Grolsch. Upon confirmation of the takeover, SABMiller announced plans to move into the emerging markets of South America and Africa with its portfolio of higher margin premium beers, including the newly acquired Grolsch brand, evidencing how the trend towards premiumization is driving the global beer market.

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SABMiller [SAB.L] may be backing down a little in its fight against Anheuser-Busch's [BUD] marketing, but dropping the case altogether could be less than ideal for both sides. The legal battle has made interesting news, and increased media coverage has resulted in greater consumer awareness of both brands. This may conceivably boost sales of both of their beers.

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Russian Standard Company has introduced its Imperia vodka to the profitable US ultra-premium vodka market. Although the product is entering an already crowded market, Russian Standard aims to position the product for success based on its smooth taste and ethnicity.